www.bisnow.com
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Submitted URL: https://go.bisnow.com/dc/GIxpn6r6Q57of05XNYyzCzX8qC9HlsTx6G0F5HUu5Mq_JPPQ4PfRAgcdUIcTIMSGV3LROHS3StU7gm6-eJmAF5ft0IIzO...
Effective URL: https://www.bisnow.com/los-angeles/news/commercial-real-estate/project-homekey-los-angeles-motel-hotel-conversion-nonpr...
Submission: On June 16 via api from US — Scanned from DE
Effective URL: https://www.bisnow.com/los-angeles/news/commercial-real-estate/project-homekey-los-angeles-motel-hotel-conversion-nonpr...
Submission: On June 16 via api from US — Scanned from DE
Form analysis 15 forms found in the DOM
GET https://www.bisnow.com/search/news
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<span>Also subscribe to Bisnow's Commercial Real Estate Newsletter</span>
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<div class="newsletter-popup-title"> Subscribe to Bisnow's <br>Los Angeles Newsletters </div>
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<span>Also subscribe to Bisnow's National Newsletter</span>
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</form>POST
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WHAT IT TAKES TO TURN AN UNDERUSED HOTEL INTO A HAVEN FOR LA'S UNHOUSED
Los Angeles View count: 0
Los Angeles
June 14, 2023 Bianca Barragán, Southern California
Courtesy of Hope the Mission
A completed Hope the Mission project on Alvarado Street west of Downtown.
The city of Los Angeles is preparing to consider three prospective developments
that would add 213 units of interim homeless housing as the city's homelessness
crisis persists.
Two of the three projects would be completed by a group called Hope the Mission
and partner Community Development Resource Group. The projects would be funded
through the third round of a statewide project called Homekey.
Homekey began in 2020 and has since created more than 12,700 permanent and
interim homes spanning 210 projects across California. The state has invested
$3.4B in the program so far, it said in a release.
A veteran of the Homekey process, Hope the Mission has already completed four
projects through the pandemic-era program that offers state funds to buy and
renovate existing structures for homeless housing.
One of the sites the city is considering is a Motel 6 in North Hills that, if
selected, would become an interim housing development with 110 units of
supportive housing and offer services. It is estimated to take eight months to
complete. The other project is a hotel called the Oak Tree Inn on Ventura
Boulevard in Encino, which would be turned into 26 units of interim housing for
transition-age youths, or 18- to 24-year-olds who have aged out of the foster
care system. It is also estimated to take about eight months to complete.
The whole process starts with finding a willing seller, Hope the Mission CEO Ken
Craft said.
"Not everyone wants to sell their hotels and motels, so our broker has to find
people that are willing to sell and sell at a reasonable price," Craft said.
Because of the complex nature of these projects, with so many government
organizations and approvals involved, the escrow period could last 60 days or
last a year, Craft said. That means the seller also has to be comfortable with
"a prolonged escrow period with no guarantees."
"That's the deal, because this process takes time," he said.
BRC Advisors Senior Vice President Ramtin Rafiee, the broker who helps Hope the
Mission and other nonprofits find and buy Homekey sites, said that to find ideal
sites, he looks for troubled properties — hotels and motels that are nuisance
properties, the ones that generate the most police reports. Often, Rafiee said,
these are places where drugs are sold and used or where sex work is common.
"No one wants to sell at the beginning," Rafiee said.
But then, he presents all that negative information — the police reports, the
documentation of trouble at the property.
"The way we describe it sounds like [selling] might be the best way for you to
do good and [give] back to the community by closing down your business, this
nonprofit organization takes over and helps people," Rafiee said.
He and his firm have worked on about 30 properties in the city and county for
Homekey.
Location is also critical, Craft said. Sometimes a motel with a willing seller
just isn't in an area that is connected to the services such as grocery stores
or public transportation that residents of these projects would need access to.
"We have to make sure this is a location that the county or city will agree to,"
Craft said, adding that local support plays a critical role in securing state
approvals.
As is the case with most projects attempting to house homeless Angelenos,
Homekey projects have received community pushback.
Because these are public projects that cities and counties sponsor, support from
the community and local elected officials is critical as well. Hope the
Mission's projects are headed to a city council committee but must be approved
by the full council before they can be submitted to the state for funding.
"It takes a lot of work, a lot of due diligence for the owner and for the city
to feel comfortable," Rafiee said.
Although the process has its challenges, Craft said the idea of using existing
structures for these purposes is faster than ground-up building and means that
more people can be housed quickly.
"Innovations such as this, and working with the public and private sector, is
something that needs to become the norm as we move forward," Craft said.
Contact Bianca Barragán at bianca.barragan@bisnow.com
See Also: South Florida’s Industrial Developers Bet On Long-Term Rent Growth
Related Topics: homeless housing, Hope The Mission, Ken Craft, Ramtin Rafiee,
Homekey
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